Trade Turbulence: Economists Warn of Impending Global Recession

The global economy is at risk of falling into recession this year due to U.S. tariff policies that have shaken business sentiment, according to a Reuters poll. Economists have cut growth forecasts for many countries and see a high risk of a global economic downturn.

The global economy is teetering on the edge of a recession, sparked by U.S. President Donald Trump's controversial tariff policies, according to a Reuters poll. The survey, polling over 300 economists, highlights waning business confidence and downgraded growth forecasts for several countries.

The blanket tariffs have disrupted financial markets, leading to a pessimistic view of U.S. assets as stable investments. Only months ago, economists projected robust global economic growth, but the new trade policies have sent shockwaves through the market, affecting investor trust, particularly against the dollar.

Economists forecast a grim future, even suggesting stagflation — a combination of stagnant economic growth, high inflation, and rising unemployment — could warp economies further. The predicament raises questions about the long-term economic outlook and central banks' ability to meet inflation targets.

(With inputs from agencies.)